When you stop and think about it, it is amazing how many different choices we have to pay for the products and services we can buy. We can pay in person, over the phone or on the internet. We can pay by American Express, Discover, Visa, Mastercard, PayPal, store credit card, debit card, [...]
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You Don’t Have the Cash Until You Have the Cash There is a direct relationship between a sale and the cash in your pocket. If you have the cash, you have a sale. If you don’t have the cash, you don’t have the sale. So many things can occur to prevent you from getting cash [...] Not Until The Cash Is In The Bank If you are not clear on when and how a sale occurs in your business, you can never manage your company properly. So what is a sale? If you use accrual accounting, then a sale is defined this way: Collect It Quickly, Spend It Slowly Write that down–right now. Now put that someplace where you will see it every day. It is that important. Everything you do in business is ultimately about having as much cash as possible. With sufficient cash reserves you can: Purchase inventory and equipment at favorable prices. Are you surprised when your customer tells you they will pay late or, even worse, won’t pay at all? You shouldn’t be. After all, there is often at least one warning sign—a red flag the customer raises to let you know there is a problem. Be alert to the following signs of [...] Imagine for a moment that your car is really dirty, so you’ve decided to wash your car, and you’re going to do it by hand. You gather everything you need—soap, bucket, sponge, chamois cloth—and head out to the hose. You squirt some soap into the bucket, turn on the hose and start to [...] Here’s a good article on cash flow by Robert A. Normand, the Executive Director of the Institute for Small Business Management and author of “Entreprenewal!, The Six Step Recovery Program for Small Business” (www.entreprenewal.com). Cash Flow Management Made Easy Author: Robert Normand A simple system can be employed to project cash over several weeks to help small business [...] |
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